Mortgage lending in July hit near three-year high: BoE |
|
|
Published
:
Wed, 30 Aug 2006 12:00
|
LONDON - Figures from the Bank of England show that mortgage lending in the UK rose by its biggest level in nearly three years in July this year. These figures bear testimony to the fact that the market is looking up this year after stagnating for most of the last year.
In July, mortgage lending increased by 9.79 billion pounds, according to the BoE. This is the biggest jump in the figures since September 2003 and comfortably surpassed the forecast of 9.2 billion pounds. Approvals for new loans increased to 120,000 in July, up from a downwardly revised 119,000 in June. These numbers indicate which way the housing market is moving. In July the numbers were the highest since January.
The BoE said consumer credit increased by 1.122 billion pounds in July as against 833 million pounds in June and analysts' forecast of 1 billion pounds. Overall lending now stands at 11 billion pounds in July and is the biggest increase since June 2004, when the housing market was showing robust growth.
The numbers are still to reflect the shock hike in interest rates by the Bank of England this month. Analysts say figures to be released by Nationwide may be the first indicator of how the interest rates have affected the housing market.
"Of course, these data precede the MPC August rate hike and expectations of further policy tightening. Hence, the lending data for August and beyond will be of greater interest," said Ross Walker, an economist at RBS Financial Markets. "Still, thus far, consumers' appetite to borrow particularly for house purchase remains strong. There is still money getting pumped into the property market."
|
|
|
|
Print this Story
Mortgage approvals jumped by 51 percent in November: BBA 